Amazon Posts $201.9 Billion Q3 Revenue as AWS Cloud Growth Beats Forecasts
Amazon reported $201.9 billion in third-quarter revenue for 2026 with EPS of $1.89, as AWS revenue reached $45.98 billion amid heavy AI infrastructure investments.
Amazon reported its financial results for the third quarter of 2026, as investors assess whether rapid growth in cloud computing and artificial intelligence can justify the company's massive infrastructure investments.
The company posted revenue of $201.9 billion, compared to analyst expectations of about $202.1 billion. Earnings per share came in at $1.89, versus forecasts of approximately $1.96 per share.
Additional revenue figures in focus included Amazon Web Services (AWS), which generated $45.98 billion in revenue, beating the $45.48 billion forecast. Advertising revenue reached $19.64 billion, compared to an expected $20.82 billion.
The report comes amid surging demand for Amazon's cloud services from artificial intelligence companies including Anthropic and OpenAI, alongside concerns over the impact of high expenditures on cash flow. Prior to the release, analysts estimated revenue would grow by about 12% year-over-year, following $180.2 billion in the same period last year.
The Anthropic Factor and Future Commitments
Another key factor influencing results is Amazon's stake in AI startup Anthropic. Last quarter, Amazon recorded a pre-tax profit of approximately $53.4 billion, largely driven by the rising valuation of its investment in Anthropic. According to Amazon's quarterly filing, the value of its holding reached roughly $190 billion at the end of June. Following Anthropic's recent IPO prospectus filing on Nasdaq, investors are closely watching how valuation shifts impact Amazon's earnings.
Anthropic is not only an investment for Amazon but also one of the largest clients of AWS. According to the IPO prospectus, Anthropic has committed to purchasing at least $110 billion in computing services from Amazon over the coming years. While this represents significant future revenue, fulfilling these agreements requires massive ongoing investments in data centers and infrastructure.
Ultimately, the financial results highlight the tension between surging cloud demand and the heavy capital expenditure required to support it. While AWS continues rapid expansion backed by major clients like Anthropic and OpenAI, heavy AI infrastructure investments have resulted in negative free cash flow as markets weigh long-term profitability.
